Financial Struggles:

Byju’s, a financially struggling edtech giant, has taken measures to reduce costs.

The company has vacated a significant portion of its office space in Bengaluru, aiming to alleviate financial burdens.

Office Space Reduction:

Byju’s terminated its lease for a 400,000 sq ft property at Prestige Tech Park in Bengaluru earlier this year.

The decision to reduce office space comes amidst efforts to cut costs and manage financial challenges. prior to this Employees of Byju’s working from Incuspaze co-working space in Gurgaon were asked to vacate the premises on 22nd Nov 2023 due to rental non-payment issues.

Lease Termination Details:

Byju’s had signed the lease with Prestige Group approximately 3.5 years ago.

The monthly rent for the office space was around Rs 4 crore.

The lease termination involved using the deposit to offset rental arrears.

Disputes with Landlords:

Byju’s is facing disputes with other landlords, including Kalyani Developers.

Kalyani Developers issued a legal notice to Byju’s for failing to pay rent for a 500,000 sq ft office space at Kalyani Tech Park.

Rent Payment Issues:

Byju’s owes ten months’ rent to Kalyani Developers, of which seven months’ rent has been adjusted with the deposit.

The company previously vacated a 400,000 sq ft office at IBC Knowledge Park between 2022 and 2023.

Current Property Status:

Byju’s still owns the vacated properties, including the ones at Prestige Tech Park and Kalyani Tech Park.

However, these properties are no longer in use by the company’s operations.

Financial Relief Measures:

Byju’s parent company, Think and Learn, received a commitment of $300 million from investors for its ongoing rights issue, which will conclude by February-end.

The company initiated a rights issue to raise $200 million, offering investors the opportunity to appoint two independent directors for enhanced transparency.

Impact on Employees:

Previously, employees working from Incuspaze co-working space in Gurugram were asked to vacate due to rental non-payment issues, primarily affecting the company’s technology teams.

Byju’s, in its effort to navigate financial challenges, has undertaken strategic measures to manage costs, including reducing office space and seeking investment support through rights issues. (Financial Express)

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